2013 Operations Review &

Project Update

Russia & CIS Precious Metals Summit,

Moscow, February 2014

Werner P. Klemens,

Head of Exploration

2

Certain statements within this presentation constitute forward looking statements. Such forward looking

statements involve risks and other factors which may cause the actual results, achievements or

performance of the Group to be materially different from any future results, achievements or performance

expressed or implied by such forward looking statements. Such risks and other factors include, but are not

limited to, general economic and business conditions, changes in government regulations, currency

fluctuations (including the US$/RUR rate), the gold price, the Group’s ability to recover its reserves or

develop new reserves, competition, changes in development plans and other risks.

There can be no assurance that the results and events contemplated by the forward looking statements

contained in this presentation will, in fact, occur. These forward-looking statements are correct or represent

honestly held views only as at the date of delivery of this presentation.

The Company will not undertake any obligation to release publicly any revisions to these forward looking

statements to reflect events, circumstances and unanticipated events occurring after the date of this

presentation except as required by law or by regulatory authority.

Disclaimer

3Highland Gold Today

• Company incorporated in May 2002 and quoted on AIM (London) since

December 2002

• Currently operating 3 producing mines, 4 development projects and

5 exploration assets – FY 2013 production was ~ 234 koz Au + Au eqv.

• Current resources estimated at over 16.5 million ounces (in accordance with

JORC)

• Focus on additional growth opportunities in Russia and Central Asia

4

Description Number or % of shares

Issued shares 325,222,098

Market Cap at AIM LSE – February 11, 2014 (in millions) US$ 375

Share Structure

• Major UK and European based institutional

investors

• Millhouse LLC (through Primerod International

Ltd) - Moscow based Russian asset

management company that oversees

investments in metallurgy, mining, real estate,

consumer goods and transport engineering

Board & Mgt

11.4%

Primerod

32.0%

Other

41.6%

Prosperity Capital

Asset Mgt

15%

5Mine Location

Bishkek

Moscow

Ulan Bator

Chita

Khabarovsk

Vladivostok

Blagodatnoуe

Novoshirokinskoye

MNV

TaseevskoyeLyubov

Belaya Gora & Flanks BG

Astana

Regional office

Exploration projects

Development projects

Operating mineUnkurtash

Klen & Verkhne-Krichalskaya

Kekura

6Mnogovershinnoye (MNV)

• 145,259 oz of gold produced at MNV

during FY 2013

• 92% gold recoveries resulting from

major process updates implemented

throughout the year

• Open-pit operations 2013 focused on

optimizing stripping at the Flank ore

body in preparation for 2014 mining

Maintaining stable production

7

Extensive near-mine exploration

programme continues

MNV Exploration

• Targeting additional reserves in

underexplored areas in-between and

along strike of known ore zones –

surface and u/g exploration drilling

• New resources delineated at three

surface targets – mining already

commenced at two targets (Pebble,

Watershed)

• 2,900 m drilling completed in 2013 at

Chaynoye prospect (Western Flank

license) – results indicate potential for

new open-pit mineable resource

• 2014 exploration programme will focus

on wider Western Flank license

8

• Record of 503,926 tonnes of ore mined

and processed in 2013

• 81,361 oz of gold equivalents produced

during FY 2013

• Increased efficiencies through major

improvements in mining and processing

implemented throughout the year

Novoshirokinskoye (Novo)

Novo – increasing throughput

9

• First gold poured – plant in test mode

produced 7,077 oz of gold

• Plant construction completed during H2 2013

• Processing regulation adjustments in

progress

• Upside exploration potential in surrounding

license area

Stand-alone processing plant in ramp-up

phase

Belaya Gora

10

• Good development characteristics – well explored

deposit, conventional gravity / CIL processing and

open pit mining

• JORC compliant resource (Indicated & Inferred) of

0.63 Moz with 5.04 g/t average grade

• Site preparation works in progress - roads,

storage facilities, foundation works in relation to

future plant and personnel accommodation

completed

• Design documentation under review by state and

environmental examinations boards

• Verkhne-Krichalskaya property (996 km2) –

large area with high potential to contribute

substantial amount of quality resources to the

future Klen operation

• 7,350 metres of exploration drilling identified

follow-up targets planned to be drilled in 2014

C h u k o t k a

Development project in Chukotka

Klen

Klen

Zeleny Mys

Bilibino

Pevek

Mayskoe

Dvoinoe

Kupol

Dalny

Kekura

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• JORC compliant resource of 2.89 Moz with

8.69 g/t average grade – significant exploration

potential

• Favourable ore metallurgy, open pit mining and

synergies with neighboring Klen project are

expected to make Kekura a low cost operation

• Advanced-stage development – camp facilities,

independent diesel power and ancillary systems

already in place

• Construction of a pilot plant with 150,000 tonnes

annual capacity is nearing completion, with

preparations for testing currently under way

• Site layout proposals along with preliminary project

design in progress

• 35,000 metres resource conversion drilling

completed in 2013

Advanced development project in Chukotka

Kekura

12Unkurtash

• 63 km² license covering 4 km long mineralisation zone

• The project hosts four distinct prospects, three of which, Unkurtash, Sarytube and Karatube

have been the focus of the Company’s extensive exploration activity

• JORC compliant resource audit in H1 2013 defines combined 3.7 Million ounces at ore grade

of 1.7 g/t (82% Measured and Indicated) for the three prospects

Unkurtash

Sarytube

Karatube

Baikonur

• Mining permits in hand for Unkurtash and Karatube

prospects – reserve calculation update for entire

Unkurtash project in progress in order to facilitate

C1+C2 category reserve registration with Kyrgyz

GKZ

• Engineering studies in respect of a planned large-

scale open-pit operation initiated

13

Lyubov

• Targeting bulk-mineable gold ore for

low-cost open-pit operation at two sites

• Project design documentation completed and approvals

received by various regulatory bodies – project

currently under review by the State Examination Board.

Taseevskoye

• Project design documentation for part of the deposit

was completed in H2 2013 and is now under review by

the State Examination Board.

• Cut-off grade study for the Baley ZIF 1 tailings prepared

Development projects in the Zabaikalsky region

Lyubov / Taseevskoye

Evgraf – Resource Model

TASEEVSKOYE

TAILINGS ZIF-1

SREDNE-

GOLGOTAYSKOYE

BALEY TOWN

14

• Production in 2014 (MNV, Novo and Belaya Gora) is expected to increase to

between 300,000 – 320,000 oz of gold and gold equivalents

• Belaya Gora – continue ramp-up to full capacity

• MNV – maintain stable production, keep costs in check

• Novo – improve efficiencies and increase plant throughput

• Chukotka projects – project development expected during 2014

• Exploration – maintain substantial exploration programmes at various projects

• Continue to review acquisition opportunities

Goals for 2014

2013 Operations Review &

Project Update

Russia & CIS Precious Metals Summit,

Moscow, February 2014

Werner P. Klemens,

Head of Exploration